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Astro Co. sold 20,100 units of its only product and incurred a $63,560 loss (ignoring taxes) for the current year as shown here. During a
Astro Co. sold 20,100 units of its only product and incurred a $63,560 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2016s activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $151,000. The maximum output capacity of the company is 40,000 units per year.
Required 1. Compute the break-even point in dollar sales for year 2015. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current 755,760.00 per pair 340,092.00 per pair 415,668.00 per pair Sales riable costs Contribution margin Contribution Margin Ratio Choose Numerator: | Choose Denominator: Contribution Margin Ratio Contribution margin per unit ISales per unit Contribution margin ratio 415,668.00 $ 755,760.00 55.00% Break-Even Point in Dollar Sales: Choose Numerator: Choose Denominator: Break-Even Point in Dollars ixed costs per unit Contribution margin ratioBreak-even point in dollars 403,500I 55.00%| | $ 733,636Step by Step Solution
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